- 14/03/2019 - 19:10
The total supply of quality office space in Moscow at the end of Q2 2014 reached 16 mln. sq m. During the first two quarters about 504 thousand sq m were delivered, 59 % of which are class A and class B. Thus, the volume of new construction exceeds by 41% the volume of the previous year and is the highest since 2009.
During the 1st half of 2014 net absorption increased by 110 thousand sq m. Thus, following Q1 and Q2 2014 the amount of net absorption achieved 260 thousand sq m which is by 308 thousand sq m higher than at the same period last year when its value was negative.
Despite the positive trend, net absorption in the first half of 2014 is almost two times lower than the volume of new construction. This on average has led to an increase in vacancy rates during Q2 2014 up to 14%, which is similar to the end of 2013.
Increased competition among high-quality office buildings as a result of growth in supply, currency fluctuations, as well as the high level of uncertainty in the economy of the country and the world as a whole, could not but affect the dynamics of rental rates in quality office space. During the first six months, the average asking rental rates for class A - $ 750 per sq m per year, for class B + - $ 530 per sq m per year. For class B - -$ 440 per sq m per year.
